The decentralized exchange landscape sees a significant development as PancakeSwap introduces “PancakeSwap Infinity,” representing a major evolution from its previous v4 iteration. This upgrade coincides with a modest gain for its native CAKE token, which saw a 3.15% increase.
Launched initially on the BNB Chain with intentions for multi-chain expansion, PancakeSwap Infinity brings substantial technical enhancements aimed at refining the user experience for traders and liquidity providers in the competitive DeFi space.
Key among the updates is the support for diverse liquidity pool models. Providers can now select between Concentrated Liquidity AMM (CLAMM) and Liquidity Book AMM (LBAMM) pools, offering greater flexibility compared to traditional AMMs.
[PancakeSwap v4 rebrands to PancakeSwap Infinity with major upgrade – 1]
Source: PancakeSwap Blog
Furthermore, PancakeSwap Infinity empowers liquidity providers with unprecedented control over their fee structures. Departing from fixed tiers, providers can opt for static fees or implement dynamic fees that adjust to changing market volatility and liquidity depths, potentially optimizing returns.
[PancakeSwap v4 rebrands to PancakeSwap Infinity with major upgrade – 2]
Source: PancakeSwap Blog
Efficiency improvements are also central to the upgrade. Users benefit from drastically reduced gas costs – pool creation fees are slashed by up to 99%. Swaps involving native blockchain tokens like BNB or ETH now consume approximately 50% less gas than typical ERC-20 token swaps, addressing a common pain point in DeFi.
The introduction of “Hooks” marks another notable innovation. These external smart contracts enable developers to build and integrate custom functionalities directly onto the platform, such as unique fee mechanisms or loyalty rewards.
Reflecting these developments, the CAKE token trades around $2.12. Technical indicators show the price positioned above its 20-day EMA and 50-day SMA, with a neutral Relative Strength Index (RSI) of 51.36 suggesting balanced market momentum currently.
Source: TradingView